When a car is returned to his location Henry has three emplo

When a car is returned to his location, Henry has three employees who prepare the car for the next rental. As a car arrives, one of the employees takes the car and washes it, cleans and vacuums it, and inspects it and prepares the paperwork for the next rental and returns the car to the lot. The employees each take a car in sequence. Henry has observed the process and has observed the time each takes to complete each step. He asks you if there is a better way to organize this part of the operations. The information about the times (in minutes) is as follow:

Wash Vacuum Inspect & return

Beverly 22 13 11

Cameron 15 17 20

Tina 19 19 14

Each rental requires two agreement forms, one for when the car is checked out and one when it is checked in. Henry orders these form from a local printer. The printer charges Henry $40 to set up the printer. The forms cost 50 cents each. Because of the damage to the forms and the forms becoming obsolete, it cost Henry 25% to store the forms. The printer will only accept orders in multiples of 100.

8. If the three months of data collected and presented above is indicative of all demand, how many forms should Henry order?

9. The printer offers Henry a 10% discount if Henry orders 5000 or more form at a time. Would this be advantageous to Henry?

10. How much would it save if any?

Solution

To better organise this we give the washing to the expert in that, inspect to the expert in that, etc.

Find the row minimum and reduce that from each row

Next is reduce column minimum from each column

Hence Cam can take washing, Beverly inspect/return (as difference is 3 minimum)

and Tina vacuum

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Printer set up cost = 40

cost of forms            0.5 x (where x = no of forms)

storage cost             0.25x

Total cost = 40+0.75x